Bitcoin (BTC) spikes above $6,500, Christmas finally upon us?

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  • BTC/USD stays above DMA50, more gains to come.
  • Bitcoin is losing the market share.
  • Investors are getting ready for Christmass rally.

One Bitcoin goes for $6,515 at the time of writing, as the world’s most popular digital coin tries to stay above critical $6,500. BTC/USD managed to recover strongly during early Asian hours, however, it still lags behind some major altcoins.

Bitcoin is losing the market share.

Some major altcoins like Ripple and Bitcoin Cash demonstrated a strong rally on Tuesday, but Bitcoin lagged behind, hovering around $6,400 level. This discrepancy pushed the market share of the world’s largest cryptocurrency to just 51.8%, which is the lowest level in recent five weeks. However, cryptocurrency experts do not lose hope for a pre-Christmass rally as he head to the year-end.

Investors are getting ready for Christmass rally.

“In traditional markets, it’s very common to see a stock rally leading up to the end of the year due to the increased activity in the private sector during the holidays. However, after a volatile October, combined with uncertainty surrounding Trump’s trade war and the Fed’s monetary policy, price action has been less than positive in the last few weeks,” Mati Greenspan, a senior market analyst at eToro, explains.

Earlier this week, another prominent cryptocurrency investor Mike Novogratz suggested that Bitcoin may refresh all-time highs in $20,000 as the market has already passed the bottom. 

While it remains to be seen, whether Bitcoin momentum falls in line with these predictions, a short-term market sentiment has definitely improved, the latest Bitfinex report shows.

The number of short Bitcoin positions placed on that cryptocurrency exchange dropped to the lowest level since August 5. It means that bulls are taking control over the situation ahead of the year-end, which historically tends to be positive for the digital coin.

Bitcoin’s technical picture

BTC/USD jumped above DMA50 (currently at $6,453) and cleared $6,500 handle, which is a positive signal for Bitcoin bulls at least in the short-term. The Relative Strength Index points upwards amid growing momentum, suggesting that more gains may be coming with the crucial target at $6,600 that served as an upper border of September-October channel. Once it is cleared, the recovery will gain traction with the next aim at $6,780 (October 15 peak) and, possibly, $7,000.

On the downside, the support is created by the above-said DMA50 (6,453) followed by psychological $6,400. Once it is cleared, the recovery will be over, while Bitcoin will enter a new phase of rangebound trading with the lower border at $6,200.

BTC/USD, the daily chart

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